Chandigarh Property Tax Defaulters to Receive Recovery Notices Soon


CHANDIGARH: Property tax defaulters in the city should brace themselves for recovery notices, including penalties and interest, expected to be dispatched by the end of this month or early next month, as the civic body initiates the compilation of defaulter lists.

Individuals who have not paid their property tax within the designated two-month period will incur a 25% penalty, plus 12% interest on the total tax amount. As the tax branch finalizes the data on taxpayers, sources indicate that there will be a prioritized focus on collecting dues from defaulters.

Separate lists for residential and commercial defaulters will be generated, with sources confirming that the majority of defaulters fall within the residential category. While there are a few cases pending involving government agencies, those will also be addressed with the appropriate departments to recover tax amounts.

“The authority has identified approximately 70,000-75,000 tax defaulters across both residential and commercial categories, many of whom have not paid during the rebate period. Initially, these defaulters will receive a recovery notice providing ample time for payment; failure to comply will result in strict actions. Historically, commercial defaulters may face consequences including property sealing, as stipulated in the relevant act. For residential defaulters, the decision made last year to disconnect water supply is also in effect to secure tax payments,” noted a senior official from the MC speaking to TOI.

There are ongoing legal processes regarding some property tax recovery cases, with sources revealing that efforts are being made to resolve these rapidly to reclaim the tax amounts. Additionally, some cases are pending settlement, and the department is working to reconcile records with those of the taxpayers.

  • Published On Jun 4, 2026 at 09:38 AM IST

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